ABM Industries (ABM) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of ABM Industries (NYSE:ABM) from a strong sell rating to a hold rating in a report published on Tuesday.
According to Zacks, “ABM’s strategy to growth through strategic acquisitions while maintaining desirable profit margins look aprreciable. The company has embarked on 2020 Vision that outlines its long-term vision for the next five years. Systematic and strategic plans of actions are likely to drive long-term profitable growth for ABM through an industry-based go-to-market approach. Despite such tailwinds, shares of ABM have underperformed its industry's growth over the past year. Moreover, the company continues to grapple with labor shortage leading to higher costs. Labor related cost pressures are likely to sustain through 2018. It's significant presence in the U.K. exposes it to the European economy which has become highly unpredictable post the Brexit referendum.”
Separately, ValuEngine upgraded ABM Industries from a strong sell rating to a sell rating in a research report on Saturday, July 28th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of Buy and a consensus price target of $42.67.
ABM Industries (NYSE:ABM) last issued its quarterly earnings results on Wednesday, June 6th. The business services provider reported $0.47 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.45 by $0.02. The firm had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.55 billion. ABM Industries had a return on equity of 7.79% and a net margin of 1.40%. ABM Industries’s revenue was up 20.6% on a year-over-year basis. During the same quarter last year, the business posted $0.49 EPS. equities analysts forecast that ABM Industries will post 1.88 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 6th. Shareholders of record on Thursday, July 5th were given a dividend of $0.175 per share. The ex-dividend date was Tuesday, July 3rd. This represents a $0.70 dividend on an annualized basis and a yield of 2.25%. ABM Industries’s payout ratio is presently 40.00%.
In other ABM Industries news, COO Scott J. Giacobbe sold 3,342 shares of the firm’s stock in a transaction dated Thursday, June 14th. The stock was sold at an average price of $30.90, for a total transaction of $103,267.80. Following the completion of the sale, the chief operating officer now directly owns 62,186 shares in the company, valued at approximately $1,921,547.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.30% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in ABM. Ridgewood Investments LLC acquired a new stake in shares of ABM Industries during the 2nd quarter valued at about $292,000. BlackRock Inc. lifted its holdings in shares of ABM Industries by 17.8% during the 2nd quarter. BlackRock Inc. now owns 9,269,022 shares of the business services provider’s stock valued at $270,471,000 after buying an additional 1,402,294 shares during the last quarter. Pinebridge Investments L.P. lifted its holdings in shares of ABM Industries by 21.8% during the 2nd quarter. Pinebridge Investments L.P. now owns 96,419 shares of the business services provider’s stock valued at $2,813,000 after buying an additional 17,227 shares during the last quarter. Private Advisor Group LLC lifted its holdings in shares of ABM Industries by 886.5% during the 2nd quarter. Private Advisor Group LLC now owns 106,750 shares of the business services provider’s stock valued at $3,119,000 after buying an additional 95,929 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp lifted its holdings in shares of ABM Industries by 22.3% during the 2nd quarter. OMERS ADMINISTRATION Corp now owns 38,900 shares of the business services provider’s stock valued at $1,135,000 after buying an additional 7,100 shares during the last quarter. Hedge funds and other institutional investors own 99.69% of the company’s stock.
ABM Industries Company Profile
ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through five segments: Business & Industry, Aviation, Emerging Industries Group, Technical Solutions, and GCA Services. It offers janitorial, facilities engineering, parking, passenger assistance, catering, air cabin maintenance, transportation, and specialized mechanical and electrical services.
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